Learn more about the lines of credit offered through ACLF and how they can support your organization

An operating line of credit is a financial resource designed to support your organization during periods of low revenue, offering immediate access to capital and flexibility in repayment.

A line of credit essentially operates like a credit card. Your organization can borrow as needed up to a set limit (usually up to $150,000) and repay the borrowed amount over a two-year term. Interest is charged only on the amount drawn, not the full credit limit.

Draws are unlimited, provided the total borrowed does not exceed the limit and is repaid by the end of the term. This makes it especially valuable for organizations with irregular cash flow, such as those dependent on seasonal ticket sales or unpredictable grant disbursements. In lean times, it offers a reliable source of funding and financial stability.

Lines of credit are offered by program administrator IFF and program partner Fifth Third Bank, ranging in size from $10,000 to $150,000, with two-year terms and potential for renewal. See below for the line of credit options from IFF and Fifth Third Bank.

Does your organization have uneven cash flows caused by delayed grant reimbursements or earned revenue? Does this present a challenge for future planning? A line of credit may provide peace of mind by reducing uncertainty, helping to preserve cash, and allowing your organization to focus on impact.

If you want additional support to understand if a line of credit is right for your organization before speaking to a lender, you can take advantage of BDO’s line of credit coaching to help you think through the opportunity. If you have questions about the lines of credit or the line of credit coaching, please get in touch with us and let us know.

Most lenders require collateral for lines of credit, which can prevent for smaller and medium-sized nonprofit organizations from accessing these types of loans. MacArthur Foundation has solved for this challenge by providing a 95% guaranty on lines of credit originated through the ACLF. IFF and Fifth Third then are able to make loans to borrowers that they may otherwise not be able to make, and MacArthur steps in to provide critical credit support.

Two line of credit options are offered through ACLF: One is offered through IFF, and the other is from Fifth Third Bank. Below are the details for each line of credit; review the information to see what option would work best for your organization.